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Spectra Energy's Canadian Plan - Analyst Blog

Tue, 15 May 2012
Zacks Investment Research

Spectra Energy Corp (SE) remains on track with its extensive $1.5 billion expansion program from 2009 to 2013 in British Columbia (B.C.). The natural gas pipeline operator also aims to expend more in the region after 2015 in order to meet the energy needs of North America.

The $1.5 billion expansion agenda involves the development of essential natural gas infrastructure, including the construction of two new natural gas processing facilities in northeast B.C. and related natural gas gathering pipelines. Additionally, it includes the expansion of Spectra's natural gas transmission system in the province.

Spectra is also planning to invest around $4 billion to $6 billion beyond 2015 in projects that demand building of large pipelines linking the Canadian province with Asian markets. A surge in North American shale production has prompted many companies to export excess natural gas. Hence, Spectra is also looking at the Asian markets, which require greater supplies of natural gas from varied and consistent suppliers.

The projects will cater to the energy needs in B.C. and other markets across North America. They will also diversify Spectra’s portfolio in other emerging markets and boost the economy of B.C. The company highlighted that these ventures would create more than 1,350 construction jobs, resulting in $120 million contracts with First Nations in northeast B.C. and other local contractors.

The company intends to fully incorporate local expertise in the project, recognizing utmost benefits for communities across the province while moving ahead with its business operations.

Though we believe commodity price concerns remain over the near term, the company’s core fee-based businesses of storage, transmission, distribution and Canadian gathering and processing have the potential to move the needle toward solid earnings and cash flow growth in the long run.

Spectra Energy is one of North America’s premier natural gas infrastructure plays and has strong business positions in growth markets. Hence, considering the risk associated with the weak natural gas price environment, we remain on the sidelines and maintain our long-term Neutral recommendation for the company.

Spectra, which competes with Kinder Morgan Inc. (KMI), hold a Zacks #3 Rank that implies a short-term Hold rating for a period of one to three months.

KINDER MORGAN (KMI): Free Stock Analysis Report

SPECTRA ENERGY (SE): Free Stock Analysis Report

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Zacks Investment Research

Weekly Futures Wrap Up w/Michael Seery

ino.com

We’ve asked Michael Seery of SEERYFUTURES.COM an IB of Peregrine Finanial Group to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets. Michael frequently appears on multiple business networks including Bloomberg ...

Gold Miners: Stay Away or 'Buy'?

CNBC.com
Fri, 11 May 2012 16:45 GMT
Gold is falling to 4-month lows today and Michael Purves, Weeden and Company, offers insight on how investors can make money in the commodity. The FMHR traders also discuss unusual activity for Microsoft shares.

Oil Not Out of the Woods Yet: Strategist

CNBC.com
Tue, 08 May 2012 01:44 GMT
Jeremy Friesen, Asia Commodity Strategist, Societe Generale, says demand for oil will pick up after the second quarter. He also likes gold and food such as grains.

Comment on Jobs report sends oil to biggest drop in 6 months by Mike

ino.com
Sun, 06 May 2012 19:59:30 +0000
Oil is the most "political" commodity there is. Governments always have a thumb on the scale. This is an election year. 2+2=

Comment on Jobs report sends oil to biggest drop in 6 months by Peter F

ino.com
Sat, 05 May 2012 23:41:35 +0000
Well there could be causality. I think when you buy/sell crude oil derivatives you bear the actual market in mind. If you think there will be less demand, you'd tend to take the short side. It sounds credible. But please let me argue for another point of view which tickles the little grey cells and can cause a lot of thinking. The rise of the oil price in 2008 led to a public outcry and various interviews with OPEC bosses on telly who were unable to explain why the price went up as they were pumping out oil which nobody seemed to want. If there really was a higher demand, the refineries would have increased their output, but it didn't happen. This rise was caused by speculation alone, as everybody wanted out of stocks and looked for other places to go. It has raised a few eyebrows and drew some unwanted attention to the commodity futures markets. CME Group, which runs NYMEX, offers both "physically" and "financially" settled contracts. With the former, the last owner ends up with actual oil, whereas the last owner of the latter gets money instead. Guess what the vast majority of contracts is. This is a somewhat hot topic and CME argue their best to avoid action which could reduce the number of contracts exchanged in their market (see cmegroup.com/company/files/PositionLimitsWhitePaper.pdf). Another interesting read is isda.org/speeches/pdf/Onion-futures-Annex.pdf which defends the "wind markets". Just ignore the maths which, er, prove that speculation is good against volatility. Interesting that Lincoln and Lenin shared the same blood-thirsty opinion. When you bear all this in mind, the drop of the oil price could be 1) a reaction to expected drop in demand, as the blog suggests, or 2) just a sign that many people feel they should now invest their money elsewhere and get out before everybody else wants out, too - this should be interesting to watch and we might see quite a drop. In case that no. 2) applies, the most interesting question is not "why now?" but: where is all the money going NEXT?

Articles:

Crude Oil: Higher Prices on Low Supply? Seeing is UN-Believing

Question: Does supply play a role in determining the direction of a commodity market's prices? Answer: Absolutely, but not in the way the mainstream financial media paints it out to. Case in point: crude oil. Over the past two years, oil prices have soared from a 4-year low in 2009 to a 2-year high in April 2011.Yet, all this time, crude stockpiles in the U.S. have been rising.

Look Alive! How Elliott Wave Analysis Lassos the Near-Term Commodity Turns

Anyone who's ever traded commodities knows they can turn faster than a cat stumbling on a dog park. You blink for half-a-second and "Poof!"-- the market trend whirls right around and dashes headlong into the opposite direction. Make no mistake, this is volatile territory. One way to help anticipate trend changes before they happen is to reduce the number of unknown variables in the mix. So, how do you do that?

How to Get Some Long-Term Clarity in the World's Leading Commodity Markets

Allergy season has arrived. And for many of us, that turns the outside world into a blurry battleground of foggy vision and hay fever. Yet, INSIDE the market of the world’s leading commodity markets -- the air is calm and clear. Right now, EWI’s brand-new Monthly Futures Junctures is the ultimate "shot in the arm" to bring the long-term picture of these and more commodities into sharp and startling focus: corn, wheat, cocoa, and more.

Free Week Has Ended. But Commodity Opportunities Are Just Beginning

During eight incredible days of Free Week, Futures Junctures Service editor Jeffrey Kennedy was quick to the draw in identifying major trade setups in several leading commodity markets. And in his Daily Futures Junctures, Jeffrey likewise alerted readers to those profiles with the highest risk-to-reward ratios.Here are my personal Free Week favorites: Cocoa, sugar, coffe, lean hogs, and copper.

Commodity Markets Move Fast: Get Help with the Biggest Near-Term Swings

Anyone who's ever traded in hard assets knows that prices for commodities often turn faster than a feral cat being carried to a bubble bath. You blink for half-a-second and "Poof!"-- the market trend whirls right around and dashes headlong into the opposite direction. Make no mistake, this is volatile territory. The only way to anticipate the moves of these markets before they happen is to reduce the number of unknown variables in the mix. So, how do you do that? Well, if the mainstream equation "bad news = bearish trend," and "good news = bullish trend" were true -- then fundamental analysis would be the perfect trading tool.

Tue, 21 Jun 2011 02:43:00 GMT
en.wikipedia.org
A commodity is a good for which there is demand, but which is supplied without qualitative differentiation across a market A commodity has full or partial fungibility; that is ...

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Recent Commentary:

Spectra Energy's Canadian Plan - Analyst Blog

Weekly Futures Wrap Up w/Michael Seery

Gold Miners: Stay Away or 'Buy'?

Oil Not Out of the Woods Yet: Strategist

Comment on Jobs report sends oil to biggest drop in 6 months by Mike

Comment on Jobs report sends oil to biggest drop in 6 months by Peter F

Articles:

Crude Oil: Higher Prices on Low Supply? Seeing is UN-Believing

Look Alive! How Elliott Wave Analysis Lassos the Near-Term Commodity Turns

How to Get Some Long-Term Clarity in the World's Leading Commodity Markets

Free Week Has Ended. But Commodity Opportunities Are Just Beginning

Commodity Markets Move Fast: Get Help with the Biggest Near-Term Swings

Resources:

commodity - Definition of commodity at YourDictionary.com

Commodity financial definition of Commodity. Commodity finance ...

Commodity Prices / Quotes & Commodity Charts - Free

Concept:Commodities

Commodity Resource Corp.

Commodity | Define Commodity at Dictionary.com

Commodities - Gold prices, Silver prices and more from CNNMoney.com

Food and Nutrition Division Program

Commodity - Wikipedia, the free encyclopedia